Anti-monopoly fight: Google faces the Chinese regulatory machine

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China-US tensions rise one notch; Chinese authorities have just announced, this Tuesday, the launch of a major investigation against one of the tech giants, and not just any: Google. The technological rivalry between the two major world powers continues to intensify: TikTok affair, trade and technology war (which also concerns the EU), race for 5G or semiconductors, rush for AI, accusations of cyber espionage, etc.

The offensive against Google therefore represents a new level, also gigantic, in this standoff which is becoming increasingly difficult between the two countries.

Thunderbolt in China: Google placed on blacklist

The State Administration for Market Regulation (SAMR) has thus placed the Mountain View giant under surveillance, accusing it of having ” violated the Anti-Monopoly Law of the People's Republic of China ». A law that prohibits anti-competitive practices: monopolies, agreements or abuses of dominant position (a great specialty of Google), to protect itself from competition and protect consumers. A strong initiative, which comes the day after the entry into force of new American customs duties on Chinese products.

Let's not be mistaken: this timing is not random and this investigation cannot be interpreted as a simple matter of competition. China is keen to defend its economic and political interests against the United States tooth and nail, no matter what the cost.

In its response, China has included other American companies in its sightsand the Commerce Department is also targeting two other serious players: PVH Corp, the textile empire that owns iconic brands like Tommy Hilfiger, Van Heusen and Calvin Klein, and Illumina, the global leader in genetic sequencing.

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These companies join the list of “unreliable entities,” a regulatory instrument designed to “preserve national sovereignty, security and development interests,” in the department's words. A protectionist tool dedicated to trade defense and the protection of national interests, created in September 2019.

Beijing is strengthening its game against foreign firms

It might be just as easy to think that this is a small trade dispute, but it is not. For PVH Corp, the investigation follows an “unreasonable boycott” of cotton from Xinjiang, a region where the international community denounces massive human rights violations against Muslim minorities, particularly the Uighurs.

Several international companies (H&M, Uniqlo, Adidas, Nike, etc.), concerned about their image and ethics, have undertaken to boycott cotton produced in Xinjiang because of the appalling working conditions and treatment inflicted on Uighur workers. For Beijing, this is a shameless interference in its internal affairs and an attack on its sovereignty.

As explained above, this new response is another warning shot in this trade war in which The Chinese government is increasingly taking the lead. Since adopting its cybersecurity law in 2017, China has continued to develop increasingly sophisticated legal tools to regulate the activities of foreign technology companies on its territory. All this while pampering its national champions such as Tencent, Alibaba, Baidu and BYD. Even if the surveillance of Google carries risks, it is clear that the country is determined to continue on this path.

• China launches investigation into Google, accused of anti-competitive practices.
• Beijing is also targeting other American companies, such as PVH Corp and Illumina, by placing them on a list of entities deemed ” unreliable “.
• This offensive is part of a global strategy aimed at protecting its economic interests, strengthening its sovereignty and supporting its national giants against foreign firms.

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